Question

Rane and Co manufactures eight types of milk chocolates and candies. Power and utility costs are allocated based on material costs. For the month of June, the budgeted power and utility cost is Rs. 15 lakhs and material consumption is Rs. 180 lakhs. Actual power and utility is Rs.16 lakhs and actual material consumed is Rs. 180 lakhs. Material cost for one of the milk bar “SLIM” is Rs. 24. Power and utility cost to be allocated to SLIM is:
1) Rs.2.13
2)Rs. 2.00
3) Rs 0.83
4)0.89
I have the answer but need the working & explanation to reach the answer.

Answer 1

Answer:

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